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Created on 21.03.2018 | Updated on 26.01.2021

The best time to invest your money is now

People with money in savings accounts currently only receive very low interest rates. It can therefore be worthwhile to invest some saved assets in securities such as stocks, funds and similar. But when is the best time to switch from saving to investing? Is there actually a “right” time to invest your money? One thing is clear: waiting too long does not generally pay off for investors.

Chasing the perfect time isn’t worthwhile

Everything always seems so simple with the benefit of hindsight: “If only I had invested my money in shares in company X, I would have generated an incredible return and doubled by assets by now.” This type of thing is often heard. However, even for experts, it is difficult, if not impossible, to determine the “right” time in advance. Major price gains usually occur on a few specific days and cannot be predicted in most cases. Determining the “right” day on which to make a financial investment is therefore virtually impossible or pure chance. It is much more important for investors to be clear about their investment goals and investor profile and to stick to their strategy long-term.

Profits come to those who remain disciplined and invest over the long-term

In most cases, a long-term investment horizon will result in profits: the development of global stock markets shows that average returns from an investment horizon of 10 years are always positive. This is because over a longer period of time the fluctuations on the financial market stabilize, and even large price drops on the stock market can be compensated again. This means it is all the more important not to be led by your emotions when deciding whether to sell all your investments in difficult times. If you fail to stick to a long-term investment strategy, lose your nerve and sell your shares when the price falls, you can expect to suffer losses. It definitely pays to keep a cool head. 

Invest long-term to benefit from the cost averaging effect

Staggering your investments rather than investing them all in one go can be the best approach. If you wish to invest long-term, you can break your money down into tranches and invest a certain amount on a monthly, quarterly or annual basis, for example. In this way, you can compensate for price fluctuations even more effectively and you benefit from the cost averaging effect. Even if you don’t wish to invest with a fixed plan but instead want to retain the greatest possible flexibility and invest precisely when you feel drawn to the stock market, you should heed the rule that “waiting too long is generally not worthwhile for investors”. The sooner you start investing, the longer you’ll benefit from interest, returns and dividends.

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